§12A-3-310.

§12A-3-310.
   
             EFFECT OF INSTRUMENT ON OBLIGATION FOR WHICH TAKEN
                                      
   (a) Unless otherwise agreed, if a certified check, cashier's check, or
   teller's check is taken for an obligation, the obligation is
   discharged to the same extent discharge would result if an amount of
   money equal to the amount of the instrument were taken in payment of
   the obligation. Discharge of the obligation does not affect any
   liability that the obligor may have as an indorser of the instrument.
   
   (b) Unless otherwise agreed and except as provided in subsection (a)
   of this section, if a note or an uncertified check is taken for an
   obligation, the obligation is suspended to the same extent the
   obligation would be discharged if an amount of money equal to the
   amount of the instrument were taken, and the following rules apply:
   
   (1) In the case of an uncertified check, suspension of the obligation
   continues until dishonor of the check or until it is paid or
   certified. Payment or certification of the check results in discharge
   of the obligation to the extent of the amount of the check;
   
   (2) In the case of a note, suspension of the obligation continues
   until dishonor of the note or until it is paid. Payment of the note
   results in discharge of the obligation to the extent of the payment;
   
   (3) Except as provided in paragraph (4) of this subsection, if the
   check or note is dishonored and the obligee of the obligation for
   which the instrument was taken is the person entitled to enforce the
   instrument, the obligee may enforce either the instrument or the
   obligation. In the case of an instrument of a third person which is
   negotiated to the obligee by the obligor, discharge of the obligor on
   the instrument also discharges the obligation; and
   
   (4) If the person entitled to enforce the instrument taken for an
   obligation is a person other than the obligee, the obligee may not
   enforce the obligation to the extent the obligation is suspended. If
   the obligee is the person entitled to enforce the instrument but no
   longer has possession of it because it was lost, stolen, or destroyed,
   the obligation may not be enforced to the extent of the amount payable
   on the instrument, and to that extent the obligee's rights against the
   obligor are limited to enforcement of the instrument.
   
   (c) If an instrument other than one described in subsection (a) or (b)
   of this section is taken for an obligation, the effect is (i) that
   stated in subsection (a) of this section if the instrument is one on
   which a bank is liable as maker or acceptor, or (ii) that stated in
   subsection (b) of this section in any other case.